Identifying Your Inclusion in the Wells Fargo Home Loan Modification Settlement
If you, or a member of your family, had problems with a home loan modification with Wells Fargo from 2010 to 2018, then you may be wondering if you qualify for compensation as part of the Hernandez, et al. v. Wells Fargo Bank, N.A. Home Loan Modification Settlement.
The page linked here covers in detail who is covered under the settlement agreement, which classes are included, and the requirements (if applicable) the claimant had to meet to participate in the settlement. The settlement is administered by JND Legal Administration and aims to compensate the borrowers affected by Wells Fargo’s calculation error of attorney’s fees during the loan modification processing.
Who is Included in the Settlement?
“The settlement package includes two separate Classes: (1) the Original Class (comprised of individuals who, from 2010 to 2018 had applied for or were eligible to receive a Home Loan Modification or Repayment Plan pursuant to the U.S. Department of Treasury’s Home Affordable Modification Program (HAMP) or another government-sponsored housing program (e.g. Fannie Mae, Freddie Mac, or FHA)); and (2) the Supplemental Class (comprised of individuals who would have qualified for a Home Loan Modification or a Repayment Plan through the applicable government-sponsored program except for MHA Error [i.e. an error in calculating Wells Fargo’s attorney fee]). Because of their associated MHA errors, certain borrowers identified as being eligible for a Home Loan Modification or Repayment Plan were instead improperly denied such modifications and in many cases lost their homes to foreclosure. If you received a letter and/or check from Wells Fargo relating to MHA Errors, you will likely be notified by the Settlement Administrator that you are a class member.”
Individuals Eligible for Benefits from the Settlement
“To be eligible for settlement benefits, individuals must meet the following criteria: (1) possess a mortgage or home loan serviced by Wells Fargo Bank, N.A., during the years 2010-2018; and (2) have applied for a loan modification or repayment plan under one of the government-sponsored programs (e.g., HAMP, Fannie Mae, Freddie Mac, FHA); and (3) have had their application denied by Wells Fargo due to miscalculated attorney’s fees (which the bank later acknowledged); and (4) as a result of this denial, experienced foreclosure on their home during the Class Period; and (5) not received a successful loan modification offer from Wells Fargo prior to the foreclosure. Borrowers who meet these criteria were automatically included in the settlement as either an Original Class member or a Supplemental Class member, depending on the timing of their application and foreclosure within the Class Period.”
Original Class and Supplemental Class
The agreement delineates two distinct classes:
- The Original Class. This class comprises borrowers who were denied a home loan modification or repayment plan from April 13, 2010, to December 31, 2015, due to an attorney fee miscalculation error attributable to Wells Fargo, and whose properties were foreclosed prior to September 30, 2017.
- The Supplemental Class. This class includes eligible borrowers who experienced similar denials between January 1, 2016, and December 31, 2018, and subsequently lost their homes through foreclosure as a direct consequence.
Both classes are entitled to identical claims for settlement payments and access to the severe emotional distress fund. The distinction between the classes appears to pertain solely to notice and administrative timelines.
Automatic Inclusion and No Payment Required for Participation
Eligible borrowers were automatically members of the settlement-they need not do anything to receive an award unless they seek to send in a claim form for additional compensation based on extreme emotional distress, or update their contact information. There are no fees or expenses to participate in the settlement. Payments will be sent directly to eligible class members through the mail using the address on record. If your mailing address changed subsequent to foreclosure, you should contact the Settlement Administrator to make sure you receive your payment.
Severe Emotional Distress Awards
“Above and beyond the base settlement payment, affected borrowers who suffered severe emotional distress because of Wells Fargo’s error were permitted to submit a claim for additional compensation through a separate $1.45 million fund. The claims process required the submission of additional documentation supporting the claim and was managed by a special master with expertise in evaluating claims of emotional distress. But that deadline has passed. If you filed a claim, payments are determined by the special master and will be administered directly by JND Legal Administration.”
If you missed this deadline, you may have other alternatives. We’ll try to help determine if you’re eligible and can take some action. Call our office today to tell us how we can assist you in this case.
Excluded and Ineligible Scenarios
“There are some cases where a borrower is not eligible for settlement relief. You are ineligible if:
- Your loan was not serviced by Wells Fargo during the time period at issue;
- You never applied for or were denied a loan modification or repayment plan as a result of the calculation error;
- You did not ultimately lose your home to foreclosure because of the denial;
- You, separately from this matter, entered into an individual settlement with Wells Fargo concerning the same circumstances.
If you received a letter or check from Wells Fargo concerning the error, you were identified as eligible. If you did not receive any communication but believe that you qualify, contact the Settlement Administrator.”
If You Have Not Yet Received a Payment
“If you think you’re eligible but haven’t received a settlement check, first verify with the state unclaimed property division where you last lived that an unclaimed check hasn’t been sent there. You also should contact the Settlement Administrator to verify eligibility and, if necessary, update your address. Payments are issued only to those originally identified as class members in the claims process.”
Receive Assistance or More Information
Questions about eligibility, the settlement process, or your contact information on the settlement website? Contact the Settlement Administrator by phone at 1-877-545-0236, email at [email protected] or by mail at Hernandez, et al. v. Wells Fargo Bank, N.A., c/o JND Legal Administration, P.O. Box 91350, Seattle, WA 98111. Check the settlement website for periodic updates and detailed information.
For more details, you may also visit the About the Settlement or Eligibility Criteria pages.